Collective Lawsuit against Toyota

Collective Lawsuit against Toyota

District Judge James V. Selna in Santa Ana, California has to decide on a collective lawsuit initiated by car owners who want to sue Toyota Motor Corp. because of financial losses after acceleration.

The car owners' lawyers tried to push forward the case by providing evidence for Toyota's misconduct while Toyota aimed to dismiss the group lawsuit underlining the company's innocence.

"It is true that plaintiffs do not generally allege the precise dollar value of their losses, but that level of specificity is not required at this pleading stage," Selna's ruling report reads. "It is enough that they allege a tangible loss that can be proved or disproved upon discovery."

The claimants demand compensations amounting to millions because Toyota failed to repair defects and consequently decreased the value of the purchased cars significantly. Several car buyers of vehicles that stem from the defect episode further claim severe injuries and even deaths as a consequence for the insufficient car quality.

In 2009, a wave of recalls for Toyota's vehicles raised attention to defects of the cars' pedals and electronic systems. Toyota underlines that it did not know about the electronic defects and did not willingly distribute the broken cars.

The judge now forwarded the lawsuit and explains: "Plaintiffs' fraudulent concealment claim pleads particular facts in support of the defect allegations, and that is all that is required at this stage."